Mortgage Rates Defy Jobs Report Again
Last week’s monthly jobs report proved to be quite strong, adding 292,000 jobs. This exceeded the predicted 211,000, and makes for a grand total of 2.65 million for the ear. At this point, we can see that 2015 was the second best year since 1999.
Usually, economic data like this is likely to send mortgage rates higher. In fact, a report this exceptional should have been a sure bet for a significant uptick. However, once again, mortgage rates are defying expectations. On the Friday following the report, rates actually moved down to achieve a two-month low.
Much of this can be attributed to weakness in other areas of the economy. Specifically, investors are concerned about the lack of income growth, the losses in global stock prices, the downturn of oil prices, and continued concerns about the implications of the Fed rate hike. They are therefore moving away from risky stocks to buy bonds, which moves mortgage rates lower. There is no telling how long this can last, though, so locking into current lows may be advisable.
